INDIA TOP NEWS

India’s domestic passenger vehicle sales in July dived at the steepest pace in nearly two decades, an auto industry body said on Tuesday, as a financing crunch deepened a crisis in the country’s autos sector and triggered large-scale job losses.

Reliance shares saw their biggest intraday rise in more than a decade on Tuesday, after the company set a target to reach zero net debt in 18 months and vowed to reward shareholders with higher dividends and periodic bonus issues.

• Pakistan asks U.N. Security Council to meet over India moves in Kashmir

Pakistan on Tuesday asked the United Nations Security Council to meet over India’s decision to revoke the special status of Jammu and Kashmir, the Himalayan region that has long been a flashpoint in ties between the nuclear-armed neighbors.

• Amazon in talks to buy up to 10% stake in India’s Future Retail - Bloomberg

Amazon.com is in late-stage talks to buy as much as 10% of Future Retail, Bloomberg reported on Tuesday, citing people familiar with the matter.

Manufacturer Bosch said on Tuesday it had begun restructuring parts of its business in light of a deepening slowdown in the country’s automotive industry, as the German car parts supplier posted a drop in June-quarter profit.

• India needs time to restore order in Kashmir -top court judge

Indian authorities need more time to restore order in Kashmir, a Supreme Court justice said on Tuesday as a security clampdown entered a ninth day since New Delhi revoked the region’s special status, triggering protests.

GLOBAL TOP NEWS

U.S. President Donald Trump on Tuesday backed off his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales.

China reported a raft of unexpectedly weak July data, including a surprise drop in industrial output growth to a more than 17-year low, underlining widening economic cracks as the trade war with the United States intensifies.

• Hong Kong airport reopens after overnight clashes, mass protests

Hong Kong’s airport resumed operations, rescheduling hundreds of flights that had been disrupted over the past two days as protesters clashed with riot police in a deepening crisis in the Chinese-controlled city.

LOCAL MARKETS OUTLOOK

• The Indian rupee is expected to open higher against the dollar after President Donald Trump deferred the implementation of tariffs on some Chinese products, prompting a broad rally in Asian currencies and equities.

• The Indian government bonds are likely to fall in early trade as core inflation rose in July, raising concerns over the quantum and pace of further monetary easing.The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.50%-6.56% today.

GLOBAL MARKETS

• U.S. stocks closed higher on Tuesday after an announced delay of planned tariffs on some Chinese imports brought buyers back to the equities market in a broad-based rally.

• Asian stocks joined a global equities surge, after Washington delayed tariffs on some Chinese imports and gave much-needed relief for markets gripped by political and economic turmoil.

• The yen rose as weaker-than-expected Chinese economic data reinforced the view that resolving the trade war was a long way off even if U.S. President Donald Trump had delayed some additional tariffs.

• The U.S. Treasury yield curve hit its flattest level in more than 12 years on Tuesday, suggesting increased market anxiety over the state of the economy amid trade war concerns and global political tensions.

• Oil prices fell after industry data showed U.S. crude inventories unexpectedly rose last week, erasing some gains from the last session that were stoked after Washington said it would delay tariffs on some Chinese goods.

• Gold prices inched up as markets eyed ongoing political and trade turbulence, even as a U.S. decision to delay tariffs on some Chinese goods boosted risk appetite.